BRICS Nations Slam US Tariffs As WTO Rule Violations

Rio de Janeiro: The BRICS nations, comprising India, Brazil, Russia, China, and South Africa, have issued a strong joint statement expressing serious concerns about the unilateral imposition of tariffs and non-tariff measures, seemingly targeting the United States. The BRICS nations deemed the US actions inconsistent with World Trade Organisation (WTO) rules, calling for global cooperation to safeguard a non-discriminatory, open, fair, inclusive, equitable, and rules-based multilateral trading system.

The BRICS nations voiced their concerns, amidst elevated uncertainty and intense volatility, regarding the global economy and financial markets. "The global economy and financial markets have increasingly been subject to elevated uncertainty and bouts of intense volatility," the statement read. In this challenging environment, BRICS members have shown resilience and pledged to cooperate among themselves and with other countries to avoid trade wars that could plunge the global economy into recession or prolong subdued growth.

The statement comes as the deadline for the 90-day pause on reciprocal tariff escalations announced by US President Donald Trump approaches. The pause, which was set to end on July 9, has been a point of contention between the US and other nations. The BRICS nations have pressed for the need to de-escalate trade tensions, promote balanced global growth, and strengthen inclusive economic globalisation.

Call For Climate Finance and Cooperation

Beyond trade, the BRICS nations have also discussed the importance of climate finance. They have called on advanced economies and the international financial system to provide substantial finance for climate mitigation in developing economies. In the joint statement, the BRICS nations asserted that predictable, equitable, accessible, and affordable climate finance is crucial for just transitions and meeting the goals of the UNFCCC and its Paris Agreement.

Important Quotes From The Joint Statement

- "We voiced serious concerns with unilateral trade actions inconsistent with WTO rules."
- "Collectively, we will continue to pursue constructive and active engagement in international financial institutions and a rules-based multilateral trading system."
- "We call on advanced economies and other relevant actors in the international financial system to provide substantial finance for climate actions in developing countries."

The BRICS nations have also reaffirmed their commitment to multilateralism and called for stronger collective measures against any form of economic coercion. They have also suggested the need for IMF governance reform, including adjusting quota allocations and voting shares to match current economic output and purchasing-power parity.

IMF Governance Reform

Furthermore, the BRICS nations have presented a unified front against unilateral tariffs, emphasising the need for cooperation and dialogue to address global economic challenges. 

During a high-level finance-track meeting, ministers from BRICS nations agreed to push for IMF governance reform at its December review session. Their proposals include adjusting quota allocations and voting shares to match current economic output and purchasing-power-parity, enhancing representation for developing and low-income countries, and ending the tradition of European leadership in favour of merit- and region-based selection processes.